Government shutdown could mean higher grocery prices - Local news, weather, sports Savannah | WSAV On Your Side

Government shutdown could mean higher grocery prices

Posted: Updated:

The stalemate in Washington could mean higher grocery prices. Because with congress locked up *not* passing a budget, it means they're not likely to pass a new farm bill either. That means you could see higher prices at the grocery store for stuff like milk, cheese and butter.

When the government shut down Monday at midnight it also marked the expiration of the latest Farm Bill. The bill does a lot of things including managing food stamps, and regulating crop insurance. That regulation helps give farmers a cash buffer. Without it, the cost of maintaining their livestock can easily outweigh the sales they make.

The bad part is: there's a trickle-down effect. The Farm Bureau says, come January, consumers will face the impact of the higher costs farmers are paying to feed and transport their livestock. One New York agriculture representative says, that means the price for milk may double in the coming months from $3 to $6 per gallon. That could ripple to other milk-dependent foods like cheese and butter.

Analysts expect congress to extend the law for another year or two, rather than agree on a new bill. But it's not clear when that might happen. If lawmakers don't take action soon, it'll be bad news for all of us.

Many shoppers aren't going to be willing to pay so much for a gallon of milk. And without making those sales farmers, especially in smaller markets are at risk of going out of business.

The timing isn't great. Prices for so many groceries have already been going up. A gallon of milk has already risen a quarter this year. Bread and orange juice prices are also up. And the problem feels even worse, since wages for American workers are basically stagnant.

  • On Your SideMore>>

  • Columbus police officer attacked in Smiths Station again

    Columbus police officer attacked in Smiths Station again

    Wednesday, August 20 2014 6:54 PM EDT2014-08-20 22:54:21 GMT
    The same Columbus police officer was attacked near his home in Smiths Station for the second time in two months, authorities confirm to WRBL News 3.
    The same Columbus police officer was attacked near his home in Smiths Station for the second time in two months, authorities confirm to WRBL News 3.
  • Medical manufacturer to create 200 new jobs in Opelika

    Medical manufacturer to create 200 new jobs in Opelika

    Wednesday, August 20 2014 6:04 PM EDT2014-08-20 22:04:04 GMT
    Gambro, a medical supply manufacturer under Baxter International, announced a $300 million investment in its Opelika factory.
    Gambro, a medical supply manufacturer under Baxter International, announced a $300 million investment in its Opelika factory.
  • Columbus police investigating reported Gould Street shooting

    Columbus police investigating reported Gould Street shooting

    Wednesday, August 20 2014 5:53 PM EDT2014-08-20 21:53:51 GMT
    A man was hospitalized after being shot in the hip along Gould Street in Columbus Wednesday.A man was hospitalized after being shot in the hip along Gould Street in Columbus Wednesday.
    Columbus police have established a crime scene at a home on Gould Street after a reported shooting.
    Columbus police have established a crime scene at a home on Gould Street after a reported shooting.
Powered by WorldNow

1430 East Victory Drive
Savannah, GA 31404

Telephone: 912.651.0300
Fax: 912.651.0320
Email: newsemailalert@wsav.com

Can't find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 Media General Communications Holdings, LLC. A Media General Company.